Adopted in 1985, San Francisco Planning Code Section 429 currently requires developers to spend one percent (1%) of construction costs for on-site public artwork for most new development projects or additions to existing buildings over 25,000 square feet.
In the words of a reader last month with respect to the City’s 1% for Art program:

Let’s talk about the McArt glued into every office plaza/condo tower in town for a second. 1% for Art is a fantastic concept: good job, City. How about creating an allowance (ie, an option) that would allow the builder to pool that money into a central City fund rather than have it dedicated to on-site one-liners (at the City’s discretion)? It’s nice to have art, but it’d be nicer to have a massive pool quickly build up that could be used to do something truly spectacular every few years or so: maybe build a museum or park or a new theater with a funding base.

So how much of it will be wasted on adminstration and how much will be siphoned off to other issues.
Leave it like it is. You might not like the pieces but you can’t guarantee the City’s taste is going to be any better. We will end up with art by committee and look what it has done for the architecture of this city. Every piece will have a bay window.

I agree with Sunset Guy. It’s way better to have a number of distinct individuals deciding what art is to be installed than a single agency who will favor a small group of connected artists and probably waste the money on administrative fees and junkets.
And I don’t think the art that has been created by the existing fund is a problem today, I’ve seen some quite good pieces that have come out of this.
I think a better approach would be to allow the developers to pool their money together if they so choose, or donate it directly to museums and the like. No need for the government to get involved.

It’s a nice concept but knowing the BOS and SF’s overall politics this just sounds like a bad idea. Every art selection will turn into a political football by someone.
As the system currently stands the biggest issue is that a handful of developers have questionable taste but since the transactions are essentially private the majority of people just move along. If you put all the money into a large fund and a very large, very expensive piece gets selected it will almost instantly become a controversy.
This is a solution in search of a problem.

The public art requirement seems like a wonderful opportunity for developers to consider a partnership with organizations like Black Rock Arts Foundation – whose mission is to support and promote community, interactive art and civic participation.
Investment in arts and cultural initiatives, generate significant benefits for cities in the long term, in terms of increases in property value, revenue and jobs.

Seems to me like the developer should have to put in less than 1% if the art is going to be off site. Otherwise why would they go for it, they are paying the 1% anyway might as well have it in the lobby.